Full Truck Alliance Co is venturing into a billion-dollar (and more) IPO in the United States. The company is like Uber for the trucking segment, with its headquarters in China. The company has many investors, including Alphabet Inc. and the Vision Fund of the SoftBank Group Corp. It is looking to get $1 billion in funding at a valuation of $20-30 billion. It may get up to $2 billion as per reports.
Manbang Group or Full Truck Alliance is synonymous with a unique mobile application. This links companies to truck drivers, taking care of the former’s transportation requirements in China. By GTV (gross transaction value), it was the biggest global platform for digital freight last year. The company has gone ahead with its preliminary document for listing on the U.S. Securities and Exchange Commission’s site. It has not given any information on its fund-raising activities, or the listing schedule for the New York Stock Exchange. Registration fee calculation has been done via an amount of $100 million.
Many investors support the Chinese startup, which had a valuation of $11.7 billion sometime earlier. They include Sequoia Capital China, Tencent Holdings Limited, GGV Capital, Hillhouse Capital Group, and others. Full Truck Alliance is going ahead with its listing despite Chinese regulators coming down heavily on the technology space. The campaign has already got Meituan and Alibaba Group Holding Ltd into various hurdles. The company has also received a summons from Chinese agencies, ministries, and officials with nine other technology entities in the transportation space.
The company states that it had to share information on various aspects with regulators, including pricing, user protection, competition, etc. It cannot confirm the absence of sizable penalties/fines in the future or any business adjustments which may hinder financial results/growth prospects. The company has also been watchful about its merger in 2017, warning that officials may scrutinize the transactions between Huochebang and Yunmanman.
Full Truck Alliance has its headquarters at Guiyang in Guizhou. It has a presence in 300+ cities in China, posting net losses of $531.9 million last year. It had revenues of $395.5 million to show, enabling $26.6 billion in orders. The results also had $534.3 million as charges for compensation (share-based). The company takes membership charges from its truck drivers, with commissions on all transactions it enables. It provides other driver solutions including insurance and financing, used truck purchases, and fuel cards.
The company will list with its moniker YMM. The underwriters of this deal include China International Capital Corp, Morgan Stanley, and Goldman Sachs Group Inc.